| An SI Board Since January 1999 |
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UOPIX |
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This fund offering from Profunds seems to be made for those enjoying trading a highly leveraged fund whose basis is the NASDAQ 100 Index.
The added volatility of essentially 2X the daily NASDAQ 100 moves can be exhilarating in one direction and crushing going the other.
My own preference for managing equities has been AIM (Automatic Investment Management) as devised by Robert Lichello in 1977.
aim-users.com
I periodically update my history with the fund and provide a link to the histograms showing AIM's activity. As hard as I've tried, it doesn't appear that even AIM's conservative methods can tame this leveraged fund.
Alternative methods discussed here have ranged from UOPIX/USPIX switching, Scaling on buys and sells, UOPIX/QQQ rationing, and several others. For my alumni account in which we have UOPIX I'm planning on using just the Sell side of AIM for right now and forget re-accumulation until some clever idea develops that makes sense to me.
This account was started in December of 1998. The fund had a stellar year or two before being crushed by the mathematical progression of continuing BEAR market for about 12 months (through April 2001). It remains to be seen if I can fully recover from the pounding that we've taken.
I suggest that you read as much of the dialogue here as possible for the period starting March 2000. The early history and success of UOPIX was tarnished badly over the 12 month period from 2000 to 2001. However, this has occurred not because of some failure of Profunds, but the near disaster in the NASDAQ 100 Index. This leveraged fund needs to be understood COMPLETELY before it is used as an investment vehicle.
Best regards, Tom
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